What Are Your Rights As A Home Buyer ?
Buying a home is a lifetime achievement for most of us. It is indeed an exciting phase when you start searching for the dream home. While your primary focus will be on the comfort and convenience factors, you may not pay much attention to the legal complexities of home buying.
The government has introduced certain laws to protect consumer’s interests and enable transparency in real-estate transactions. A homebuyer also termed as an allottee is a person who acquires the apartment or plot through transfer or sale but does not include a person to whom such plot/apartment is given on rent. If you have a clear idea about your legal rights as a home buyer, you can prevent issues related to pricing and service delivery.
So, if you are planning to buy a new home, learn about your rights as a homebuyer.
Right to be informed
A homebuyer or allottee enjoys the privilege to obtain information regarding legal sanctions, building layouts and specifications and other approvals from the concerned authority.
A homebuyer is eligible to know details about stage-wise completion of the project including provisions for water, sanitation, electricity & other amenities and services as agreed to between the promoter and allottee, in accordance with the terms and conditions of the sale agreement.
Right for inspection
As a home buyer, you have the right to inspect a property and ensure quality before making the purchase. The allottee has the right to visit the project site to assess the progress of the project.
The homebuyer or allottee is entitled to claim the possession of an apartment, plot or building. The association of allottees shall be entitled to claim the possession of the common areas.
Right to refund
The allottee has the right to withdraw from the project and claim refund, interest, and compensation if the land promoter fails to hand over the apartment, plot or building. The National Consumer Dispute Redressal Commission (NCDRC) has held that buyers can seek a refund if possession is delayed beyond one year from the date promised by the builder. According to NCDRC, in case of non-delivery of projects within the prescribed deadline, the builder will refund the entire amount with 10 percent interest.
The allottee or homebuyer owns the right to have the necessary documents and plans, including that of common areas, after handing over the physical possession of the unit.
If a project gets delayed and if the allottee does not intend to withdraw from the project, then the developer will be liable to pay the allottee monthly interest on bank loans for every month of delay as per the agreement. This is applicable for under-construction projects.
A buyer can file a complaint against a developer if they make any major structural alterations in the sanctioned plans, layout, fittings and amenities without the consent of at least 2/3rd of the allottees, other than the promoter, who have agreed to buy an apartment in a building.
Benefits of hike in value
After receiving ownership of the property from the seller, the buyer can enjoy the benefit of any improvement or increase in the value of the property, and to the rents and profits from the property. The seller can have no claim on the benefits of the property after the sale.
If a buyer finds any structural or defect in workmanship within 5 years of handing over of the possession, then the property seller will be liable to rectify it without any further charge. If the promoter fails to rectify the same within 30 days, the allottee is entitled to receive compensation.
Registered conveyance deed
The seller is responsible for executing a registered conveyance deed in favor of the allottee. The signing of the deed implies transferring the title of the property from the seller to the buyer. The seller is required to certify that the property is free of any legal encumbrance. Once registration of the conveyance deed is complete, the buyer holds the legal rights of the property.
Know your rights before buying a home. For any doubts and further information, please comment.